- Grover has raised over $1 billion and plans to utilize the new money to democratize access to technology while also addressing the “e-waste” problem.
- It allows consumers and companies to rent technology on a monthly basis, eliminating the need for upfront capital expenditure and providing more flexibility.
- The subscription service equalizes access to technology by allowing customers to choose from over 3,000 goods and have total control over the subscription term to maximize cost.
- Grover’s circular supply chain ensures that the resources are reused or repurposed.
Grover, a German scaleup and European market leader in consumer tech subscriptions, said today that it has raised over $1 billion (about €847 million). It plans to utilize the new money to democratize access to technology while also addressing the world’s massive “e-waste” problem.
Grover, which was founded in 2015, allows consumers and companies to rent technology on a monthly basis, eliminating the need for upfront capital expenditure and providing more flexibility than an outright purchase or financing plan. The subscription service equalizes access to technology by allowing customers to choose from over 3,000 goods and have total control over the subscription term to maximize cost.
At the end of the initial subscription period, the consumer has the option of purchasing the product, returning it, or continuing on a month-to-month basis. Returns are restored to “as new” condition and recirculated to keep them in use and out of landfills. When a product’s life cycle is complete, Grover’s circular supply chain ensures that the resources are reused or repurposed. Subscriptions are also stress-free for customers, with 90 percent of the cost of any damage covered as usual.
Grover’s founder and CEO, Michael Cassau’s Verdicts
Michael Cassau, Grover’s founder and CEO, stated, “Consumer electronics are important to modern living, and we think that everyone should have access to the technology they need at affordable costs.” However, the linear structure of society’s consumption throughout the years has resulted in e-waste being the world’s fastest increasing waste stream.
“We’re taking advantage of a significant shift in consumer choices to deliver more technology to more people while correcting the worrisome e-waste trend that has such serious environmental repercussions. So far, we’ve recycled 475,000 items, which equates to 1,400 tonnes of e-waste. This current round of funding is a significant vote of confidence from our investors and will enable us to achieve our objective of being the world’s premier sustainable electronics subscription brand.”
The latest fundraising round for the scaleup includes a $1 billion (about €847 million) asset-backed loan from London-based Fasanara Capital, as well as an extension of its Series B investment round from around €60 million to €84.5 million. The loan financing will be made available to a special purpose corporation that will buy and own the goods Grover’s clients subscribe to. This structure isolates asset ownership from Grover’s subscription platform, allowing the business to concentrate on product development, client acquisition, and international expansion.
How is Grover planning to utilize the funds?
Grover will utilize the additional cash to accelerate development and worldwide expansion in new and existing markets, in what is one of the largest fundraising rounds for a business in the circular economy area. Grover would be able to grow circulation from 475,000 to 5 million by 2024 because of the funding.
In response to increased consumer demand, the firm nearly quadrupled its subscriber base over the first half of the year and now provides access to nearly 250,000 electronic goods.
“Grover has gone from strength to strength and is well on its approach to dominating the $280 billion addressable tech subscription market,” said Francesco Filia, CEO of Fasanara Capital. Consumer tastes for electronic devices are rapidly shifting toward a subscription economy, and Grover, Europe’s fastest-growing business in that area, is set for tremendous growth as a result. Grover’s development over the last year is a tribute to the world-class founder-led management team, and we look forward to assisting them at this exciting juncture in the journey.”
According to the UN, the world creates more than 50 million tonnes of e-waste each year, with just 20% of that garbage recovered. Grover hopes to have 5 million product circulations by the end of 2024, avoiding 24,000 tonnes of e-waste. JMS Capital-Everglen, Viola Fintech, Augmentum, Coparion, Circularity Capital, and Samsung Next are among Grover’s current investors.